AI-Driven Crypto Scams Using Pig Butchering and Professional Networks
Fraudsters used artificial intelligence and pig-butchering tactics to conduct crypto scams in 2024, generating at least $9.9 billion in proceeds. Blockchain analytics firms reported that AI scam software sold on platforms like Huione Guarantee enabled scammers to impersonate others and generate deceptive content, with revenue from such services growing 1,900% since 2021.
What happened
Fraudsters leveraged artificial intelligence and international networks to conduct pig-butchering scams, which involve building victims' trust before convincing them to make fraudulent crypto investments and then preventing withdrawal of transferred funds.
Scammers used AI software to impersonate others or generate realistic content, with vendors on the peer-to-peer marketplace Huione Guarantee selling generative AI technology including face-changing services for approximately $200 worth of crypto per listing.
Huione Guarantee received at least $375.9 million in cryptocurrency in 2024, functioning as a platform hosting dozens of software vendors that sell AI tools to facilitate scams.
Reported impact
Crypto scammers' revenue from pig-butchering schemes rose 40% to at least $9.9 billion in 2024, with total possible earnings reaching $12.4 billion according to blockchain analytics firm Chainalysis.
Revenue generated by sellers of AI scam services grew 1,900% since 2021, with those sellers making $18 million in 2024 from hawking AI software used in scams.
Index analysis
Chainalysis warned that the potential of AI technology to exponentially scale crypto scams will further add to challenges associated with combating these crimes, with the firm predicting more aggressive countermeasures may be needed.
TRM Labs predicted in its 2025 crypto crime report that financial groomers and other scammers will heavily expand their use of AI over the coming year.
Governance controls
While law enforcement agencies worldwide have targeted fraudulent operations, scammers have refined their tactics and expanded their networks across multiple countries to avoid shutdowns.
Despite authorities making progress in tracking and shutting down fraudulent operations, the sheer volume of scams shows ongoing challenges in combating crypto-related fraud.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.